Endowment challenge program-fees.

14LSO-0106.C1

FISCAL NOTE

	FY 2015	FY 2016	FY 2017
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure (Decrease):
UNIVERSITY OF WYOMING FUNDS	(237,500)	(237,500)	(237,500)

Source of expenditure decrease:

Decrease in fees paid by the University of Wyoming (UW) to the UW Foundation

Assumptions:

Under an agreement between UW and the UW Foundation, the UW Foundation assesses UW a 1.25% annual fee on the endowment value to fund the UW Foundation’s fund-raising enterprise. Absent approval to continue the fee at the current 1.25% level in the general government appropriations bill, this bill would result in an expenditure reduction of $237,500 annually as a result of a reduction of the fee on state endowment matching funds.

The UW Foundation and the UW Trustees approved an increase in the annual fee from 1% to 1.25% in the spring of 2013.

Note: This this bill would not require that the provisions of the draft legislation be applied to all endowment funds. However, the UW Foundation has determined, and the University agrees, that endowment donors should be treated identically to the way in which state endowment funds are treated.  Since the state endowment match represents approximately 25% of the total UW Foundation endowment, absent approval to continue the fee at the current 1.25%, the total reduction in fees paid to the UW Foundation for fundraising operations would be approximately $950,000 annually ($237,500 X 4).

Prepared by:   Dean Temte, LSO       Phone: 777-7881

(Information provided by Chris Boswell; UW; 307-766-2238)